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Answer to Question #137859 in Management for Mocla
Question #137859
1.2.1 Discuss the three steps involved in locational break-even analysis. (2 marks)
1.2.2 On the basis of the data on the three locations provided above, use a locational cost-volume analysis to
determine the most suitable location for the IKEA facility in South Africa. As part of the analysis, plot the cost curve for each of the three location on the same graph, determine the total cost for each location, and the expected profit for each location. For the plots, use volume from 0 to 7400 at intervals of 200. (8 marks)
1.2.2 On the basis of the data on the three locations provided above, use a locational cost-volume analysis to
determine the most suitable location for the IKEA facility in South Africa. As part of the analysis, plot the cost curve for each of the three location on the same graph, determine the total cost for each location, and the expected profit for each location. For the plots, use volume from 0 to 7400 at intervals of 200. (8 marks)
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